October 1, 2004 US Customs Changes: Notes For Our Courier Customers

US Customs has made some changes to existing policies, effective October 1, 2004, relating to classification of merchandise at the time of release on the northern border, and to the reporting of ultimate consignees at the time of release for all modes of transport and ports of entry.  We have posted to our website the new policies, explanations of the policies, and updates and clarifications.  Following are some clarifications of the new policies that may be of particular interest to our courier and low-value shipment customers.

The 100% classification at release policy relates specifically to electronic entries (requests for release) made via the Border Cargo Selectivity (BCS) release module.  Many shipments valued under US $200 do not require BCS treatment, and can be released under “Section 321” (named after the applicable section of the trade law).  Shipments clearing Customs pursuant to Section 321 procedures do not require HTSUS classification.  For such shipments, a document showing the parties involved, a description of the merchandise, value, and country of origin is still required.  Please note, though, that some goods, such as textile articles and FDA-regulated goods, may not be allowed to clear Customs under Section 321 treatment.

The new policy relating to ultimate consignee reporting requires, for certain entry types, the Internal Revenue Service (IRS) number or Social Security Number (SSN) of each ultimate consignee.  An exception is made for informal entries, where the ultimate consignee’s name and full address will suffice, although an SSN or IRS number is preferred (Customs states that if a number is not provided, entry documents will need to be presented to Customs and the entry will not be processed as “paperless”).  Generally, entries may be processed as informal if the entered value of the shipment is US $2,000 or less.  Please note, though, that there are some goods that may not qualify for informal entry, or may only qualify for informal entry at a value of US $250 or less.  Examples of such items that may require formal entry at some value less than US $2,000 include textiles, plastic and rubber articles, leather articles, footwear and headgear, handbags and similar containers, and furniture, among others.  Section 321 releases (described in the preceding paragraph) do not require SSN or IRS numbers.

If you are unsure whether a particular shipment is eligible for Section 321 or informal entry treatment, we suggest you consider providing full US harmonized tariff classification, and consignee SSN or IRS number, with your paperwork to ensure your shipment is not delayed as a result of the new Customs policies.

Please visit our website, www.pbb.com, for complete information regarding these US Customs policy changes.  If you have any questions, your calls are always welcome at (716) 692-3100.